Feeds

Google accused of UK tax dodge

UK tax bill? No results

The next step in data security

Search giant Google has been accused of avoiding UK tax by routing most of its earnings through Ireland.

This means it saves about £100m a year by paying Irish corporation tax at 12.5 per cent rather than the 28 per cent it would face in the UK.

British advertisers send their money to Google's Irish subsidiary, an arrangment described as unfair and unacceptable.

This means that even though Google UK turned over £1.25bn in the UK it paid only £600,000 in UK corporation tax - 90 per cent of its earnings were channeled through Ireland.

Richard Murphy, who did the research for the Sunday Times, called on Her Majesty's Revenue and Customs to tax Google on its UK turnover as if it were running a UK branch.

A Google spokesman said: "Google complies fully with the tax requirements in all the countries in which we operate. In the UK and elsewhere we make a very substantial contribution to local and national taxation. In addition, we provide employment for hundreds of people in the UK and many more across Europe."

Google has close links with the Tory party - Eric Schmidt sits on their economic recovery committee and Google's chief spin doctor is ex-Tory spinner Rachel Whetstone.

Several companies have faced similar accusations including Tesco and of course the owner of the Sunday Times, News International. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.